Saturday, April 30, 2011

Haynesville Shale Rig Count: -1 to 139

The Haynesville Shale rig count was down one this week to 139.  Texas was down one to 35, while Louisiana held at 104.  Unfortunately, the weekly Baker Hughes report was little changed from the previous week. I attribute that more to a lack of attention than to a dearth of movements.  Next week should be more active as they catch up.



Friday, April 29, 2011

U.S. Rig Count: +18 to 1,818

The weekly Baker Hughes rig count showed an 18 rig increase, bringing the number of working rigs to 1,818.  Oil rigs increased by 13 to 926, gas rigs increased by four to 882 and miscellaneous rigs increased by one to 10.  By type, vertical rigs were up nine, directional rigs were up six and horizontal rigs were up three.  Horizontal rigs still represent 56.3% of all working rigs in the U.S.

In the Haynesville Shale region, inclusive of other formations, the count was down one to 160 with a one rig decrease in north Louisiana to 160, while east Texas held at 51.

I'll be off the reservation this afternoon, so look for the detailed Haynesville Shale rig count late tonight or, more likely, tomorrow.  (After a quick perusal of the updated rig list, there likely aren't too many changes.)

Thursday, April 28, 2011

Spring Cleaning: New Texas Completions

I'm doing some spring cleaning and data gathering, and I came across the following completions that I either overlooked or have yet to be "officially" reported.  The first batch is unofficial, but if the data changes down the line, I'll update them. The second batch I just missed somehow.  The spreadsheet will be updated early next week:

New unofficial completions:

  • Bath Unit #2, Valence Operating: .299 MMcf/day IP, 12/64" choke, 515 psi; Perfs: 12,030-12,141, length: 111 ft.; Carthage Field (Haynesville Shale), Rusk Co., Survey: GREEN, AS, A-350
  • Black Knights #1 H, XTO Energy: 10.392 MMcf/day IP, 14/64" choke, 7,430 psi; Perfs: 12,940-19,183, length: 6,243 ft.; Carthage Field (Haynesville Shale), San Augustine Co., Survey: ZANCO, C, A-329

New Louisiana Completions

  • J Salter H #1, QEP Resouces: 12.758 MMcf/day IP on 15/64 in. choke at 7,900 psi; Perfs: 12,683-17,033, length: 4,350 ft.; Woodardville Field, Bienville Parish, S18/T15/R9; res. A, serial #240524
  • Feist 7 H #1, QEP Resouces: 10.51 MMcf/day IP on 16/64 in. choke at 8,100 psi; Perfs: 11,340-15,830, length: 4,490 ft.; Elm Grove Field, Bossier Parish, S7/T16/R11; res. non-unitized, serial #241456
  • Kinsey 28 #1, J-W Operating: 6.342 MMcf/day IP on 20/64 in. choke at 7,000 psi; Perfs: 12,018-16,420, length: 4,402 ft.; Elm Grove Field, Caddo Parish, S28/T16/R13; res. A, serial #241129

KKR Buys More Barnett Property

Private equity investor Kohlberg Kravis Roberts & Co. (KKR) yesterday announced that it had agreed to purchase parcels of property productive in the Barnett Shale from Carrizo Oil & Gas.  KKR's subsidiary KKR Natural Resources (KNR) will pay $104 million for 122.4 Bcf net proven reserves and current net production of 8.3 Mcf/day from 58.5 net wells in and around Parker Co., TX.  The sale represents only a portion of Carrizo's Barnett holdings.

KKR has been focused on the "gas space" for a few years, most notably successfully investing in and subsequently flipping Marcellus Shale producer East Resources to Shell.  Natural gas has been getting the stink eye from investors and the media for the past couple of years, but the Smart Money thinks it's a worthy investment.

Keep an eye on KNR.  Parent KKR is neither a long-term buy-and-hold investor nor a collector of dividends.  They have an exit strategy in mind and a timeline for that exit.  My question is whether this will simply be a property play or if they will pick up a producer along the way.

EIA: Storage +31 Bcf to 1.685 Tcf

The weekly EIA working gas in storage report showed a 31 Bcf net injection, bringing the level of gas in storage up to 1.685 Tcf.  The weekly injection was relatively low, 62% lower than last year's injection (81 Bcf) and 52% lower than the five year average (65 Bcf).  The current storage level is 215 Bcf below last year's (1.9 Tcf) and 11 Bcf below the five year average (1.696 Tcf).


Temperatures for the week averaged 53.9 degrees, which is right on the average for this time of year but 1.7 degrees cooler than the same week last year.  Because temperatures generally were cooler in the regions with the highest concentration of gas usage, the impact of the cooler weather was magnified. 

Tuesday, April 26, 2011

New Texas Permits

4/19/11 - 4/25/11:

  • Aggies DU #1H  , XTO Energy; Carthage Field (Haynesville Shale), San Augustine Co. Co., Survey: GRAY, A, A-640
  • Jenkins Unit #1H  , EOG Resources; Carthage Field (Haynesville Shale), Nacogdoches Co. Co., Survey: DE TORRES, P, A-55
  • CGU 12 #51HH , Anadarko E&P; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: WHITE, JA, A-749

New Texas Completions

4/19/11 - 4/25/11:

  • Letourneau Gas Unit 6 #28HH, Anadarko E&P: 7.1 MMcf/day IP, 18/64" choke, 5,765 psi; Perfs: 11,978-17,089, length: 5,111 ft.; Carthage Field (Haynesville Shale), Harrison Co., Survey: PEARSON, TK, A-586
  • Walker SU A #1H, EXCO Operating: 26.48 MMcf/day IP, 26/64" choke, 9,597 psi; Perfs: 14,818-19,565, length: 4,747 ft.; Carthage Field (Haynesville Shale), Nacogdoches Co., Survey: WALKER, J , A-57
  • New Horizons #E1H, XTO Energy: 6.064 MMcf/day IP, 16/64" choke, 4,350 psi; Perfs: 11,180-18,305, length: 7,125 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: WALDEN , TW, A-698

Monday, April 25, 2011

For Sale: The Other Half of Petrohawk's Pipeline Business

Last year I made light of Petrohawk's asset sales, characterizing them as a giant yard sale.  The company sold several billion dollars worth of productive - but "non-core" - assets to support its capital spending plans.  News came today that the company is selling the other half of its Haynesville Shale pipeline business (Kinder Morgan bought the other half) and hopes to raise $1 billion to support capex.

I've always been leery of selling assets to support growth capital spending, but Petrohawk is a producer and it has every right to support its core business.  When times are tough - and with $4/MMBtu gas, times are tough - you need to do what you do best.  Everything else is a distraction.

Plan B: Nuke Frack!

Tired of the hydraulic fracturing debate?  Maybe we should look back at history for some better ideas. In fact, those who oppose hydraulic fracturing based on faulty logic and imagined data should look upon the current brand of fracturing as a very mild solution compared to one promoted by the Nixon administration in the early 70's: using underground nuclear bombs to fracture shales and sandstones to stimulate gas production.

Sounds far-fetched, I admit, but an article in yesterday's Kansas City Star documents pilot projects between 1967 and 1973 where a few sites in New Mexico and Colorado saw nuclear bombs detonated a mile or so below the surface to stimulate gas production.  Ultimately, the program was scrapped because the gas produced was slightly radioactive (!!!) and the environmental impacts were too severe.

Perhaps if Marcellus Shale gas producers had only known how strong the anti-fracking movement would be in the Northeast they would have built their negotiation position by initially promoting nuclear fracturing and compromised at hydraulic fracturing. A win-win, right?

Sunday, April 24, 2011

Three More LA Completions

There were a few more new Louisiana Haynesville Shale completions in this morning's Shreveport Times. They will appear on the spreadsheet and maps later this week.

  • Auburnia Co 29 H #1, Encana Corp.: 17.432 MMcf/day IP on 22/64 in. choke at 6,975 psi; Perfs: 12,056-16,311, length: 4,255 ft.; Holly Field, DeSoto Parish, S29/T14/R13; res. non-unitized, serial #241401
  • Rocking G Farms 31 H #1, SWEPI, LP: 21.89 MMcf/day IP on 27/64 in. choke at 7,707 psi; Perfs: 12,471-16,818, length: 4,347 ft.; Trenton Field, DeSoto Parish, S31/T11/R12; res. Jur-A, serial #241552
  • Douciere 27 H #1, XTO Energy: 9.4 MMcf/day IP on 15/64 in. choke at 5,610 psi; Perfs: 11,289-15,451, length: 4,162 ft.; Logansport Field, DeSoto Parish, S27/T12/R16; res. A, serial #242149

Friday, April 22, 2011

Lots (30) of New Louisiana Completions

  • Holt 9 H #1, Petrohawk Operating: 5.777 MMcf/day IP on 14/64 in. choke at 7,467 psi; Perfs: 12,252-16,901, length: 4,649 ft.; Lake Bisteneau Field, Bienville Parish, S16/T16/R9; res. A, serial #241742
  • Gilbert 22 H #1, Petrohawk Operating: 6.858 MMcf/day IP on 14/64 in. choke at 7,610 psi; Perfs: 12,025-16,610, length: 4,585 ft.; Lake Bisteneau Field, Bienville Parish, S15/T16/R9; res. A, serial #241850
  • Giddens Land Co 23 H #1, Petrohawk Operating: 4.804 MMcf/day IP on 14/64 in. choke at 7,403 psi; Perfs: 11,371-15,973, length: 4,602 ft.; Lake Bisteneau Field, Bienville Parish, S14/T16/R10; res. A, serial #242360

Haynesville Shale Rig Count: +1 to 140

The weekly Haynesville Shale rig count increased by one to 140 working rigs.  The count was up one in Louisiana to 104 and held steady in Texas at 36.



Thursday, April 21, 2011

U.S. Rig Count: +28 to 1,800

The weekly Baker Hughes rig count showed a 28 rig increase in the U.S., bringing the count to 1,800.  Oil rigs increased by 33 to 913, leaping ahead of the gas rig count (878), which dropped by seven.  The miscellaneous rig count held at nine.  By type, horizontal rigs were up 17 (1,020), vertical rigs were up 15 (567) and directional rigs were down four (213).

In the Haynesville Shale region, inclusive of other formations, the rig count was down one to 161.  North Louisiana held at 110, while east Texas was down one to 51.

EIA: Storage +47 Bcf to 1.654 Tcf

The weekly EIA working gas in storage report showed a 47 Bcf net injection of gas, bringing the storage level to 1.654 Tcf.  The weekly injection was 37% lower than last year's injection (75 Bcf) but 38% higher than the five year average (34 Bcf).  The current storage level is 9.1% below last year's level but 1.4% higher than the five year average.


Temperatures last week averaged 55.6 degrees, which was 3.9 degrees warmer than normal and 0.9 degrees warmer than last year. While changes in storage are not directly correlated to weather conditions, the fact that the current injection was 37% lower than last year while the temperature was slightly higher in comparison implies some degree of improved economic performance year-over-year, which is driving increased natural gas usage.

Wednesday, April 20, 2011

Honda Civic Natural Gas in Showrooms This Fall

The 2012 natural gas powered Honda Civic, the only consumer natural gas car now available in the U.S. - although in a very limited fashion - will be released in wide distribution starting fall 2011 with the expectation that it will be in showrooms across the country within a year of that.  (Civic Natural Gas web site)

Honda's web site is a bit more cautious than the article above, defining "nationwide" as "...states that have sufficient CNG stations within close proximity to authorized Civic Natural Gas dealers."  But it is a start, especially given the growth (slow, but methodical) of CNG fueling infrastructure across the country.

Honda is changing the CNG Civic's name from the Civic GX to Civic Natural Gas ("Civic Natural Gas" = CNG, get it?).  In gallon equivalents, the CNG's mileage is rated at 27 MPG city/38 MPG highway/31 MPG combined, but of course the cost of natural gas is significantly lower than regular gasoline, so it's not exactly an apples-to-apples comparison.  The car will be assembled in Indiana.  For those interested, the press release is full of all of the auto technophile's data, from MacPherson struts to compression ratios.

Tuesday, April 19, 2011

New Texas Permits

04/12/2011 - 4/18/2011:
  • Hatch GU SAG #1H, Chesapeake Operating; Carthage Field (Haynesville Shale), San Augustine Co. Co., Survey: PICARD, BB, A-493
  • Jude GU #1H, Samson Lone Star; Carthage Field (Haynesville Shale), Nacogdoches Co. Co., Survey: CHIRINO, J A, A-17
  • Zap Minerals Unit #1H, EOG Resources; Carthage Field (Haynesville Shale), San Augustine Co. Co., Survey: HEARFORD, C, A-17

Recent Texas Completions

4/11/2011 - 4/18/2011:

  • Letourneau Gas Unit 6 #30HH, Anadarko E&P: 7.7 MMcf/day IP, 20/64" choke, 4,022 psi; Perfs: 12,052-16,827, length: 4,775 ft.; Carthage Field (Haynesville Shale), Harrison Co., Survey: PEARSON, TK, A-586
  • Bishop #1H, SM Energy: 11.883 MMcf/day IP, 18/64" choke, 8,775 psi; Perfs: 13,650-18,701, length: 5,051 ft.; Carthage Field (Haynesville Shale), San Augustine Co., Survey: HOLMAN, S, A-128
  • Smith SU #1H, EXCO Operating: 10.245 MMcf/day IP, 18/64" choke, 7,780 psi; Perfs: 13,638-18,399, length: 4,761 ft.; Carthage Field (Haynesville Shale), San Augustine Co., Survey: DILLARD, A, A-98
  • Dillard SU #1H, EXCO Operating: 10.733 MMcf/day IP, 18/64" choke, 7,677 psi; Perfs: 13,721-19,269, length: 5,548 ft.; Carthage Field (Haynesville Shale), San Augustine Co., Survey: DILLARD, A, A-98

Monday, April 18, 2011

Go Joe!

Joe Nocera, New York Times op/ed columnist posted a defense of his recent piece called "Pass the Boone Pickens Bill" after receiving an "avalanche of angry e-mails and comments."  In the defense, he articulately lays out the case for natural gas in the face of mounting anti-gas noise, including an upcoming academic article by Cornell professor Robert Howarth that I believe will be discredited quickly for its weak data and questionable assumptions.

In the follow-up piece, Nocera argues that natural gas is not perfect, but it is a hell of a lot better than the alternatives.  Most importantly, issues that are valid concerns are fixable.

Friday, April 15, 2011

Haynesville Shale Rig Count: -7 to 139

Baker Hughes made up for two weeks of inattention by a vastly updated rig count for the Haynesville Shale region.  This week's count showed a seven rig decrease, bringing the total number of rigs working the Haynesville Shale down to 139.  The count was down five in Louisiana to 103 and down two in Texas to 36. This level is 45 rigs lower than the high water mark achieved in July 2010.  The trend of decline is one we expect to continue to see.  Updated maps and spreadsheets have been posted.


U.S. Rig Count: -10 to 1,772

The weekly Baker Hughes rig count showed a ten rig decrease, bringing the total working rigs in the U.S. down to 1,772.  Oil rigs were down six to 880, gas rigs were down four to 885 and miscellaneous rigs held at seven.  We will have to wait another week to see if oil rigs exceed gas rigs for the first time since December 17, 1993.  In 2007, the number of gas rigs exceeded oil rigs by 1,224 (1,495 gas rigs vs. 271 oil rigs on 6/22/07), so this represents quite a significant shift in U.S. drilling in just three years.  By type, vertical rigs were up nine (552), horizontal rigs were down six (1,003) and directional rigs were down 13 (217).

In the Haynesville Shale region, inclusive of other formations, the overall rig count was down three to 162.  North Louisiana was down five to 110, while east Texas was up two to 52.

The detailed Haynesville Shale rig count should be available late this PM.

Publish or Perish

Earlier this week, I wrote about a alarmist study by Cornell University professor Robert W. Howarth that claimed shale gas wells have a greater impact on climate change than coal.  A reader who sent me a copy of the report (study available here).

The study draws a firm conclusion, "The (greenhouse gas) footprint of shale gas is significantly larger than that from conventional gas..."  But in reviewing the study, I'd have to agree with critics that the data is very thin and some of the assumptions are dubious.

Thursday, April 14, 2011

Another Stage in the Life Cycle of a Parasite

I was looking at the haynesvilleplay.com web site earlier today to see if a post published when I noticed a text ad that said "Gas Drilling by Fracking May Contaminate Groundwater."  Out of curiosity, I clicked the link (a no-no in the online ad world, but I just had to know more).  It led to a site for a plaintiff's  law firm, the name of which I will not publish as not to encourage them, that offered to represent "victims of hydraulic fracturing."

We've reached another stage in the life cycle of the parasite.

LA Lease Auction: Average Haynesville Area Bonus $7,106

The monthly lease auction by the Louisiana state Mineral Board was another yawner this month as far as property in the Haynesville Shale region is concerned.  Of the 1,154 acres on the block generally prospective for the Haynesville, only 170 acres received sufficient bids, leaving 85% of the potential leases on the sideline.  The two packages that were successfully bid received very similar offers and the average bonus was $7,106 per acre ($7,198 on a weighted average acreage basis).

New Louisiana Completions

  • Glass Prop 29-16-9 H #1, Chesapeake Operating: 15.864 MMcf/day IP on 22/64 in. choke at 6,872 psi; Perfs: 12,520-16,718, length: 4,198 ft.; Lake Bisteneau Field, Bienville Parish, S29/T16/R9; res. A, serial #241679
  • Morrell 5-15-14 H #1, Chesapeake Operating: 14.232 MMcf/day IP on 22/64 in. choke at 6,424 psi; Perfs: 11,720-16,275, length: 4,555 ft.; Caspiana Field, Caddo Parish, S8/T15/R14; res. A, serial #241785
  • Kinsey 27 #1, J-W Operating: 6.271 MMcf/day IP on 24/64 in. choke at 6,400 psi; Perfs: 12,000-16,402, length: 4,402 ft.; Elm Grove Field, Caddo Parish, S27/T16/R13; res. A, serial #241138

Chrysler to Sell CNG in US by 2017

Earlier this week, Chrysler made waves at the SAE World Congress automotive engineering conference in Detroit by announcing that it is targeting 2017 as the year to introduce a CNG-powered vehicle in the U.S.  Chrysler, which is partially owned by Fiat, will use Fiat CNG technology, which has been  used in Europe for years, as the basis for the vehicles.  It is likely to appear first in Ram brand trucks.


This is a big deal because the Honda Civic GX is the only consumer CNG model currently offered in the U.S., and it's not widely available.  GM is starting to offer some CNG fleet vehicles.  It is not clear if the Chrysler CNG vehicles will be widely available at first or only if they will be fleet-only for a period of time.

EIA: Storage +28 Bcf to 1.607 Tcf

The weekly EIA working gas in storage report showed a 28 Bcf increase, bringing the U.S. storage level to 1.607 Tcf.  The weekly injection was exactly the same as the five year average and 51 Bcf lower than last year.  The current storage level is 10 Bcf, or 0.6%, higher than the five year average (1.597 Tcf) but 137 Bcf, or 7.9%, lower than last year (1.744 Tcf).


Temperatures last week averaged 51.3 degrees, which is 1.6 degrees warmer than average but 7.3 degrees cooler than the same week last year, helping explain the big difference in the comparable net injection.

Wednesday, April 13, 2011

What a Difference a Year Makes

Petrohawk presented at the annual IPAA OGIS New York investor conference today, exactly one year to the day that the company appeared at the conference last year.  Last year the company was touting its asset sales and liquidity.  This year Petrohawk is talking about liquidity of another kind, oil and NG liquids.  But the biggest difference I noticed was in the company's Haynesville decline curve.  Check it out:

2010:

2011:

A New Environmental Fear about Natural Gas

A new environmental fear about natural gas - and shale gas in particular - is being pushed through a new environmental study to be published by a Cornell University professor in May.  Previewed by the New York Times (with more information here) and rebutted by energy industry group Energy in Depth, the study claims that natural gas is more harmful for the environment that people believe because of "fugitive gas" released during the commercial life cycle of natural gas.

From what I have read in articles about the unreleased study, it combines real concerns (venting, flaring and leaks) with thin data and some questionable methodologies.

Tuesday, April 12, 2011

New Texas Permits

4/4/11 - 4/11/11:

  • Nolte Unit #1H  , EOG Resources; Carthage Field (Haynesville Shale), San Augustine Co. Co., Survey: HOLMAN, S, A-135
  • Stedham SU #2 H , EXCO Operating; Carthage Field (Haynesville Shale), San Augustine Co. Co., Survey: JONES, N, A-175
  • W.K. Furrh Deep GU #1H  , NFR Energy; Carthage Field (Haynesville Shale), Harrison Co. Co., Survey: HOOPER, BF, A-296
  • CGU 12 #16HH , Anadarko E&P; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: WHITE, JA, A-749
  • Red River Gas Unit "A" #1H  , BP America; Carthage Field (Haynesville Shale), San Augustine Co. Co., Survey: MITCHELL, E, A-205

Recent Texas Completions

4/4/11 - 4/11/11:

  • SW Henderson Hay GU #1H, Goodrich Petroleum: 19.633 MMcf/day IP, 22/64" choke, 8,922 psi; Perfs: 14,982-19,046, length: 4,064 ft.; Carthage Field (Haynesville Shale), Angelina Co., Survey: WALKER, J , A-647 (shut-in; previously self-reported by Goodrich at 21.0 MMcf/day)
  • Jayhawks DU #1H, XTO Energy: 10.259 MMcf/day IP, 17/64" choke, 8,175 psi; Perfs: 13,340-19,183, length: 5,843 ft.; Carthage Field (Haynesville Shale), San Augustine Co., Survey: BENNETT, J, A-470
  • Coyotes DU #1H, XTO Energy: 11.201 MMcf/day IP, 14/64" choke, 480 psi; Perfs: 13,160-17,393, length: 4,233 ft.; Carthage Field (Haynesville Shale), San Augustine Co., Survey: ANDERSON, G, A-47

Monday, April 11, 2011

Frac Focus - Better Late than Never?

Chesapeake Energy issued a press release today saying that the company is participating in the Frac Focus Chemical Disclosure Registry program (fracfocus.org). Chesapeake is one of 11 industry participants of 24 registered that has started disclosing the components of hydraulic fracturing fluids. Kudos to the companies participating in this program, but I worry that it might be too late in some regards. 
In an effort to stubbornly resist disclosing the chemical makeup of frac fluid, the gas industry lost control of the story.  Their intransigence was viewed as suspicious by the general public and the anti-fracking folks are leading the conversation, which has let to more hyperbole and hysteria.

The big problem is that while the gas industry was playing slow-down in disclosing frac fluid information, the anti-fracking people have shifted their focus slightly to complain about the contents of the water expelled post-fracking (EEEK!!! Radiation!).  Outside of proper containment techniques, there's not much anyone can do about what lies beneath.  This is a bigger issue in the Appalachian region because of their geology, but it just shows what can happen when you don't own up to a story, especially one that you think is overblown.

Will this web site change any minds?  Maybe after more information is added (it is fairly "unpopulated" at this point) people might be able to better understand hydraulic fracturing, but will it be too late to matter?

Friday, April 8, 2011

Haynesville Shale Rig Count: +2 to 146

The weekly Haynesville Shale rig count showed a two rig increase to 146.  The count was up two in Texas to 38 and stayed even in Louisiana to hold at 108.  For the second straight week, the Baker Hughes count didn't show much activity.  I chalk that up to lax data collection rather than a dearth of activity.



U.S. Rig Count: +6 to 1,782

The weekly Baker Hughes U.S. rig count showed a six rig increase, bringing the total to 1,782.  Oil rigs were up nine to 886, gas rigs were down two to 889 and miscellaneous rigs were down one to seven.  By type, vertical rigs were up 12, directional rigs were up two and horizontal rigs were down eight.

In the Haynesville Shale region, inclusive of other formations, the count was up two to 165.  East Texas was up two to 50, while Louisiana held at 115.

The detailed Haynesville rig count will be available late this afternoon (I'm getting something of a late start).

Oil Rumor Information Consolidated

Just for fun, I have compiled data about the oil rumor (mostly in Texas) in a new page (see "Oil Rumor" tab above).  It includes a spreadsheet of wells that are suspected to be targeting the oil layer rumored to be underneath the Haynesville Shale layer (Smackover, Norphlet?).  It also links to the data placed on a map for reference.



Please keep in mind that this information is hearsay and should be approached with skepticism.  That said, however, please let me know if there are any errors or omissions.  The information comes from a range of sources, some more dependable than others. I realize that much of this information is rumor, but after GMX Resources published a partial confirmation, I am more comfortable discussing it publicly.  I can be emailed at haynesvilleplay (at) gmail.com.

Thursday, April 7, 2011

New EIA Global Shale Report

A couple of days ago, the EIA released a report it sponsored that attempts to quantify worldwide shale gas resources.  Here is a blurb about the project, the executive summary and a link to the 365 page report.


The report only covered 32 countries (noted in white, above), and while it may be hard to draw conclusions from a report with a limited scope (but that is still very ambitious), one thing is clear: shale gas will be part of the worldwide energy equation in the coming decades.  The techniques and technologies developed in the U.S. by independent producers will have a global impact.  That's pretty exciting.  

More New Louisiana Completions

This data was reported by LA DNR yesterday. I have also updated missing data from the list from earlier this week. Both have been added to new spreadsheets and maps.
  • MC LA Minerals 30 H #1, Petrohawk Operating: 8.366 MMcf/day IP on 14/64 in. choke at 8,513 psi; Perfs: 12,294-16,877, length: 4,583 ft.; Lake Bisteneau Field, Bienville Parish, S19/T16/R9; res. A, serial #241760
  • BSMC LA 1 HZ #2, Comstock Oil & Gas: 4.799 MMcf/day IP on 20/64 in. choke at 5,049 psi; Perfs: 11,434-16,017, length: 4,583 ft.; Benson Field, DeSoto Parish, S12/T10/R15; res. A, serial #240612
  • San Patricio 22 H #1, SWEPI, LP: 21.121 MMcf/day IP on 24/64 in. choke at 8,239 psi; Perfs: 12,599-16,710, length: 4,111 ft.; Brushy Bayou Field, DeSoto Parish, S22/T11/R12; res. A, serial #241166

New Louisiana Smackover Completion

The LA DNR reported a new Smackover completion with gas and condensate:
  • Meadows Estate 18 #3-ALT, Petro-Chem Operating: 1.965 MMcf/day and 183 BC/day IP on 12/64 in. choke at 2,500 psi, Lisbon Field, Claiborne Parish, S18/T21/R4; SMK A RA reservoir, serial #242329

EIA: Storage -45 Bcf to 1.579 Tcf

The weekly EIA working gas in storage report showed a 45 Bcf decrease after last week's cold weather, bringing the storage level down to 1.579 Tcf.  The weekly withdrawal was in great contrast to last year's 29 Bcf injection and the five year average's 13 Bcf injection.  This is likely the last withdrawal until the cold weather comes in late fall.  The current storage level is 86 Bcf (-5.2%) below last year's level and only 10 Bcf (+0.6%) above the five year average.


Tuesday, April 5, 2011

Sun River Announces First Haynesville Completion (with Oil)

Sun River Energy announced today that it has completed its first Haynesville Shale well in Panola Co., TX.  Sun River operates a farm-out from Devon Energy.

  • Neal Heirs Unit #1H, Sun River Operating: 2.256 MMcf/day IP, unkown choke, 3,320 psi; Perfs: 10,214'-10,716', length: 502 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: MCGOWAN, AJ, A-426 (all information self-reported)
The company's press release said, "presently, the well is producing both natural gas and crude."  Crude?  You mean oil?  There weren't many specifics about the crude in terms of quantity or where it came from.  I'm sure there will be much conversation about it in the days to come.

New Louisiana Completions

The following completions were in the Shreveport Times on Sunday.

  • EE Johnson Est. 19 H #1, Petrohawk (WSF): 7.237 MMcf/day IP on 14/64 in. choke at 7,991 psi; Perfs: 11,393-15,994, length: 4,601 ft.; Elm Grove Field, Bossier Parish, S18/T16/R11; res. A, serial #242150
  • J Woodard 27-15-9 H #2-ALT, QEP Resouces: 12.148 MMcf/day IP on 18/64 in. choke at 8,000 psi; Perfs: 12,660-17,150, length: 4,490 ft.; Woodardville Field, Bienville Parish, S34/T15/R9; res. A, serial #241388
  • J Woodard 34-15-9 H #2-ALT, QEP Resouces: 12.498 MMcf/day IP on 15/64 in. choke at 8,000 psi; Perfs: 12,410-16,900, length: 4,490 ft.; Woodardville Field, Bienville Parish, S34/T15/R9; res. A, serial #241203

Monday, April 4, 2011

New Texas Permits

3/29/11-4/4/11:

  • Holt-BH-BW-Allocation #1H, GMX Resources; Carthage Field (Haynesville Shale), Harrison Co. Co., Survey: MAXIMILLIAN, J , A-444
  • Danube #1H, XTO Energy; Carthage Field (Haynesville Shale), Shelby Co. Co., Survey: SMITH, J, A-632
  • Thundering Herd DU #1H, XTO Energy; Carthage Field (Haynesville Shale), San Augustine Co. Co., Survey: YARBROUGH, WH, A-453

Recent Texas Completions

3/29/11 to 4/4/11:
  • Verhalen "F" #1H, GMX Resources: 7.862 MMcf/day IP, 18/64" choke, 4,751 psi; Perfs: 11,100-16,431, length: 5,331 ft.; Carthage Field (Haynesville Shale), Harrison Co., Survey: POE, A, A-19 (updating a self-reported well)
  • Blocker Ware #8H, GMX Resources: 8.455 MMcf/day IP, 22/64" choke, 5,526 psi; Perfs: 11,970-16,141, length: 4,171 ft.; Carthage Field (Haynesville Shale), Harrison Co., Survey: WILLIAMS, WM., A-757 (updating a self-reported well)
  • Orediggers DU #1H, XTO Energy: 8.92 MMcf/day IP, 15/64" choke, 7,298 psi; Perfs: 12,980-17,543, length: 4,563 ft.; Carthage Field (Haynesville Shale), Shelby Co., Survey: HENNIS, JJ JR, A-309

Friday, April 1, 2011

Haynesville Shale Rig Count: -1 to 144

Boy, that was easy.  Baker Hughes posted some pretty stale data for the weekly rig count in our region, but there were a few changes that led the count for the Haynesville Shale down by one to 144.  Louisiana was down one rig to 108, while Texas held at 36.



U.S. Rig Count: +38 to 1,776

Zoikes! Big changes in the weekly Baker Hughes rig count jumped by 38 rigs this week to 1,776, the highest level since December 12, 2008.  Oil rigs were up 26 to 877, the highest level in the Baker Huges data (which starts in 1987).  Gas rigs were up 11 to 891 and directional rigs were up one to eight.  It seems to be only a matter of time before there are more working oil rigs than gas rigs, the first time that has happened since 1993.  By type, horizontal rigs were up 22 (1,017), vertical rigs were up 12 (531) and directional rigs were up four (22).  Horizontal rigs now represent 57.3% of all working rigs, and this is the first time there have ever been more than 1,000 horizontal rigs working.  Pop a cork for horizontals!

In the Haynesville Shale region, inclusive of other formations, the rig count was down three to 163.  North Louisiana was down two to 115 and east Texas was down one to 48.